TORONTO--(BUSINESS WIRE)--Nextech AR Solutions Corp. (“Nextech'' or the “Company”) (OTCQB: NEXCF) (CSE: NTAR) (FSE: N29), a Metaverse Company and leading provider of augmented reality (“AR”) experience technologies and services, is pleased to announce the closing of multiple new 3D modeling deals for ecommerce, providing the Company with a continually growing base of ARR (annual recurring revenue) and MRR (monthly recurring revenue). AR and 3D models have been proven to increase sales, decrease product returns, and improve advertising results, leading to potentially billions of dollars in value, and bottom line impact for the Company's global brand clients which include Kohl’s, CB2, Crate and Barrel, NAPA Auto Parts and many others.
Nextech AR CEO Evan Gappelberg commented, “We are continuing to see strong growth in our ARitize 3D offering throughout Q2 and expect an acceleration in Q3 and Q4. Our continued growth, accelerating transformation and penetration into the trillion dollar ecommerce industry is evident by our expansion into new product categories, and by our ability to consistently sign new 12-month+ 3D modeling contracts while simultaneously renewing contracts with existing clients who are requesting even more 3D models." He continues, “More and more companies and brands within the ecommerce ecosystem are recognizing the obvious benefits and ROI of our ARitize 3D product offering. We firmly believe that the transition from flat 2D photos to 3D models is now in full swing and that 3D models are currently being established as the standard in e-commerce throughout the globe. The June 9th, 2022 blockbuster news that Amazon (who has 350 million products) is now offering a shoe 'try on' in AR supports our view as 'All the brands announced including New Balance, adidas, Reebok, Puma, Superga, Lacoste, Asics, and Saucony shoes will need to be converted into a 3D models to be used in Amazon’s 'try on' which is creating more and more demand for our ARitize 3D services.'
“Companies who don’t adopt a 3D/AR ecommerce strategy will be left behind as 3D/AR produces immersive shopping experiences that customers expect, and results in 93% higher conversions and up to 40% reduced returns for merchants (shopify). Through 2022 we will continue to push for new customer wins and contract renewals, multiplying our ARR and MRR month over month.”
Winning new contracts, combined with renewals and expansion of existing contracts, is driving the rapid growth for the Company's 3D model and augmented reality business in ecommerce.
Examples of some new customer wins:
Stäubli, global mechatronics solution provider in four dedicated Divisions: Electrical Connectors, Fluid Connectors, Robotics and Textile, has signed on Nextech’s ARitize CAD, the CAD to POLY solution for their manufactured products, as well as a QR code generated Hologram. This latest adoption of CAD to POLY technology signals the manufacturing industry’s increasing adoption of 3D assets to help make their businesses profitable.
Complex Home Goods
William Wood Design, a UK based mirror manufacturer, has contracted with Nextech to create high quality complex 3D models of their mirror SKUs. Mirrors are a highly complex product to convert into a 3D model, and with this contract Nextech continues to show that it has the capacity to handle complex models of a wide variety of products.
Nextech has signed a new 3D modeling deal with Kindred Custom Snowboards for 3D models of the company’s “rideable art” snowboards. This follows multiple sports related ARitize 3D deals, including MGI Golf, Marker Deutschland, Head, Himibike, Salamander Paddle Gear, Never Summer, The Perfect Mound, Source for Sports, Joyride Bikes and others.
Art Millwork Design, an American wood wall art and wood decor manufacturer, has signed on for a variety of high quality 3D models showcasing their unique products. Nextech’s ability to provide high quality and high resolution models enables them to trust that the finished product will accurately reflect what customers are buying to put into their homes.
Point of Sale Solutions
Decor Metal, a Germany company providing tailored metal presentation concepts from display stands to shop fittings, has signed on for a variety of 3D models. Seeing products in 3D allows their customers to get a sense of what the product will look like in store, which adds to consumer confidence and helps increase sales.
Orange Energizing Solutions, an energy efficient solutions company, has signed on for a 3D AR logo, highlighting that companies are beginning to use 3D solutions in a variety of areas.
Nextech expanded its reach and now partners with marketing and other agencies to provide models for 3rd party clients. The latest signings in this area are for niche geode products, as well as an increase to the initial order for Smirnoff Ice products. These signings highlight that more and more retailers are asking for 3D models in the ecommerce space, and their marketing agencies are reaching out to Nextech for solutions for their clients.
The Company continues with expanding its reach through partner advertising agencies and through integrations with Shopify, Big commerce, and soon to be WooCommerce.
Nextech’s Shopify integration and app continues to pay dividends with signing of multiple deals including Habitt Furniture for a bed; Mobius for a large planter; Tory Burch for a handbag; Shawpz for a mirrored cabinet; Birthstone Plus for rings; Budology for a cannabis shirt and National Bookstore for bean bags, amongst others. Shopify customers are adopting Nextech’s 3D modeling technology, and looking to the Company to propel their products into the Augmented Reality space. Nextech is preparing to launch a number of new apps for Shopify and WooCommerce. Announcements will be made in the upcoming weeks.
ARitize 3D is your one-stop-shop AR solution with automated 3D model creation at an unbeatable price. Our Artificial Intelligence (AI) will turn your existing 2D product images into high-quality 3D and Augmented Reality experiences. It's fast, it's easy and it will transform your ecommerce website.
With a 3D model, clients can interact with the product to see every detail with a 3D model: turn it, spin it, zoom in, zoom out, leading to 40% lower product returns, 93% higher click through rate and a 90% reduction in product photography costs. The Company believes that this value creation and ROI is leading to the rapidly growing demand for the Company's 3D technology. Transform your online store into a dynamic virtual showroom. 3D models allow customers to see products from every angle and position them in their own space prior to purchasing. It's an exciting, immersive shopping experience that keeps customers more engaged, better informed and helps your brand stand out from the competition.
ARitize 3D is the One-Stop-Shop 3D + AR solution for ecommerce that is:
- Affordable - lowest cost provider
- Scalable - fastest, seamless, high quality
- Frictionless - requires low implementation effort
- AI & ML powered - automated 3D model creation
- End to End - from model creation to CMS & AR visualization
The Company has granted to Evan Gappelberg, CEO of Nextech as part of a 5 year employment agreement 996,346 stock options per tranche, which he will receive in the future and only upon reaching market capitalization milestones that start at $100 million extending to a $1 billion dollar market capitalization. Only upon achieving these milestones will he then have the right to purchase up to an aggregate of 11,956,152 common shares of the Company (the “Options”). The Options shall bear an exercise price of Cdn $0.55 per share, expire on June 20, 2027, and vest in twelve (12) equal tranches of 996,346 stock options per tranche, with such vesting contingent upon (i) Evan Gappelberg serving as Chief Executive Officer or Chairman of the Company at the applicable time of vesting; (ii) the Company securing all necessary shareholder and regulatory approvals to provide for sufficient availability under its Option Plan for the issuance of the common shares upon exercise of the respective Options, and/or shareholder approval of any Options which exceed the number of common shares otherwise available for issuance under such Option Plan; and (iii) the Company achieving certain market capitalization milestones.
The Company has also granted 3,601,000 stock options to directors, officers, employees and consultants for the right to purchase up to an aggregate of 3,601,000 common shares of the Company. The Options vest over three years, at a price of Cdn $0.55 per share, being the closing price of the last trading day prior to the date of grant. All Options were granted in accordance with the Company's stock option plan.
About Nextech AR
Nextech AR Solutions is the engine accelerating the growth of the Metaverse. Using breakthrough AI, Nextech AR is able to quickly, easily and affordably ARitize (transform) vast quantities and varieties of existing assets at scale making products, people and places ready for interactive 3D use, giving creators at every level all the essential tools they need to build out their digital AR vision in the Metaverse. Our platform agnostic tools allow brands, educators, students, manufacturers, creators, and technologists to create immersive, interactive and the most photo-realistic 3D assets and digital environments, compose AR experiences, and publish them omnichannel. With a full suite of end-to-end AR solutions in 3D Commerce, Education, Events, and Industrial Manufacturing, Nextech AR is in a unique position to meet the needs of the world’s biggest brands and all Metaverse contributors.
Historically Nextech has funded the development of its AR and Metaverse growth initiatives through its e-Commerce platforms, which currently generate most of its revenue. Nextech's e-commerce platforms include: vacuumcleanermarket.com (“VCM”), infinitepetlife.com (“IPL”) and Trulyfesupplements.com (“TruLyfe”). VCM and product sales of residential vacuums, supplies and parts, and small home appliances sold on Amazon. These e-commerce platforms serve as an incubator for developing and testing Nextech's leading edge AR, AI and machine learning applications for powering next-generation e-commerce technology. However with the growth the company is seeing in it's AR and metaverse solutions it’s currently in the process of winding down its ecommerce businesses.
The CSE has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.
Certain information contained herein may constitute “forward-looking information” under Canadian securities legislation. Generally, forward-looking information can be identified by the use of forward-looking terminology such as, “will be” or variations of such words and phrases or statements that certain actions, events or results “will” occur. Forward-looking statements regarding the completion of the transaction are subject to known and unknown risks, uncertainties and other factors. There can be no assurance that such statements will prove to be accurate, as future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements and forward-looking information. Nextech will not update any forward-looking statements or forward-looking information that are incorporated by reference herein, except as required by applicable securities laws.